Contracts
To utilize the new statutory protection against worker misclassification claims (Sec. 2402.134), you must audit and potentially amend driver agreements. To qualify as Independent Contractors, your written agreements must not:
- Prescribe specific hours of driver availability.
- Restrict drivers from working for competitors (exclusivity clauses are prohibited).
- Limit the driver's territory.
- Prohibit the driver from engaging in other occupations.
Hiring & Vetting
You must overhaul your onboarding "gatekeeper" protocols. Before authorizing network access, you must conduct a local, state, and national criminal background check (including the National Sex Offender Public Website).
- Disqualification Criteria: You are statutorily barred from onboarding drivers with:
- Last 7 Years: Convictions for DUI, fraud, theft, felony property damage, violence, or terrorism.
- Last 3 Years: More than 3 moving violations, fleeing police, reckless driving, or driving without a valid license.
- Lifetime: Sex offender registry status.
Reporting & Record-Keeping
- Retention Policy: Implement a strict two-year retention schedule for all records evidencing compliance (background checks, policy acknowledgments) and records regarding intoxication complaints.
- Public Notice: You must post a zero-tolerance policy regarding intoxication and a nondiscrimination policy on your website/app, including a specific mechanism for customers to report violations.
Fees & Costs
- New State Fee: You will owe an annual permit fee to TDLR. The amount is currently TBD pending agency rulemaking.
- Cost Savings: Cease payment of municipal licensing fees immediately. Section 2402.003 preempts local ordinances. If you operate in cities like Austin or Houston, they no longer have the authority to charge you for operating a DNC.
